Foot Locker (NYSE:FL) has released its financial results for the second quarter ended August 3, 2024, revealing a mixed financial performance.
The sportswear and footwear retailer reported a slight increase in sales, with total revenue climbing 1.9% and comparable store sales up by 2.6%.
Despite the growth in sales, the company experienced a widening loss, posting a net loss of $12 million, which more than doubled the $5 million loss recorded in the same quarter last year.
Even though Foot Locker achieved a gross margin expansion of 50 basis points year-over-year, the company still faced challenges on the earnings front, with a loss of $0.13 per share.
On a non-GAAP basis, the loss was $0.05 per share.
While inventory levels saw a significant reduction, decreasing by 10% compared to the second quarter of 2023, when adjusted for foreign currency fluctuations, the inventory decline stood at 9.2%.
Despite ending the quarter with $291 million in cash and cash equivalents, the company's total debt reached $445 million.
Meanwhile, Foot Locker also announced plans to relocate its headquarters to St. Petersburg, Florida in 2025. This decision is part of a broader strategy to streamline operations and foster greater efficiency within the company.